The Statistics Centre – Abu Dhabi (SCAD) has published a statistical report indicating that Abu Dhabi’s GDP expanded by 4.5 percent in the third quarter of 2024 when compared to the same timeframe last year, reaching a quarterly value of AED301.8 billion ($82.2 billion). The non-oil sector exhibited strong growth of 6.6 percent, showcasing Abu Dhabi’s vigorous economic momentum and its ability to exceed global expectations.
Resilience amid global challenges
In spite of a challenging global landscape, Abu Dhabi’s economy continues to thrive. Preliminary estimates from SCAD reveal that non-oil activities accounted for 54 percent of the overall economy in Q3 2024, underscoring the Emirate’s dedication to economic diversification.
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Year-to-date economic performance
For the first three quarters of 2024 (January to September), Abu Dhabi’s GDP increased by 3.9 percent, while its non-oil economy recorded a 5.9 percent rise during the same period, demonstrating enduring resilience.
His Excellency Ahmed Jasim Al Zaabi, chairman of the Abu Dhabi Department of Economic Development (ADDED), stated: “The steady performance of Abu Dhabi’s economy over the past years reaffirms the effectiveness and efficiency of our multi-dimensional diversification strategy, proactive policies, progressive regulatory frameworks, and countercyclical measures to address mega shifts in the global economy and market fluctuations. The attributes of our soaring Falcon Economy have established us as a rising economic powerhouse and a global magnet for talents, businesses, and investments.”
Government initiatives and infrastructure development
“With our focus on strengthening public-private partnerships to develop high-growth sectors, significant government capital investments continue to supercharge Abu Dhabi’s development across key sectors. In 2024, 144 new projects were approved by the Abu Dhabi government with a total budget of AED66 billion, concentrating on vital areas such as housing, education, tourism, and natural resources. Furthermore, strategic investments in transport infrastructure saw the launch of multiple traffic improvement initiatives with a budget exceeding AED3 billion. Major agreements were also secured by Etihad Rail with international leaders in rail and infrastructure, paving the way for enhanced connectivity and economic integration. As we move forward, we are doubling down our efforts to accelerate Abu Dhabi’s economic growth and transition to a smart, diversified, and sustainable economy, ensuring a brighter tomorrow for the coming generations,” Al Zaabi further added.
Focus on investment and economic ecosystem
His Excellency Abdulla Gharib Alqemzi, director general of SCAD, remarked: “Abu Dhabi’s economic performance reflects the emirate’s focus on diversification and its ability to attract sustained investments. Foreign investment, which reached AED904.5 billion in 2023, underscores Abu Dhabi’s proactive approach to promoting a dynamic business ecosystem. This success is underpinned by the Emirate’s excellence in services, supported by high-end infrastructure, a robust digitalization strategy, and the prosperous visionary leadership, which continue to position Abu Dhabi as a global economic hub.
Commitment to data transparency and support
“In this context, SCAD remains committed to delivering accurate, timely, and transparent data that informs strategic decisions. By leveraging advanced technologies and innovative methodologies, SCAD empowers policymakers and stakeholders to drive growth and resilience across sectors, ensuring long-term sustainable development for the emirate,” Alqemzi further noted.
Sector-specific growth: transport and storage
The transport and storage sector in Abu Dhabi experienced significant growth in Q3 2024, recording a growth rate of 18 percent with a value added of AED7.1 billion. This remarkable performance can be attributed to substantial investments in the sector, including increased general cargo volumes and a rise in container handling. The robust growth of this sector was further boosted by oil logistics and services, alongside an increase in ports revenues within Abu Dhabi.
Financial and insurance sector expansion
Similarly, the financial and insurance sector saw considerable expansion, achieving a growth rate of 11.6 percent and contributing 6.4 percent to Abu Dhabi’s GDP with a value added of AED19.5 billion. This growth underscores Abu Dhabi’s position as a leading financial hub, driven by an increase in loans and growth in deposits across major banks. These figures reflect the sector’s solid performance and its critical role in supporting the Emirate’s economic ambitions.
Construction sector progress
The construction sector maintained its upward trend, showing a growth of 10 percent in Q3 2024. This sector contributed 8.8 percent to Abu Dhabi’s economy, with a total value added of AED26.7 billion. The sector’s growth was primarily driven by a significant increase in investments in urban infrastructure projects, which consequently led to a notable rise in job creation within the sector during the same period.
Real estate market dynamics
In the real estate sector, growth was recorded at 6.1 percent, with a value added of AED10.7 billion, contributing 3.5 percent to Abu Dhabi’s GDP. These figures highlight the ongoing demand for high-quality real estate offerings in Abu Dhabi and the sector’s role in driving the Emirate’s diversified economic base.
Manufacturing sector consolidation
The manufacturing sector remained a key element of Abu Dhabi’s non-oil economy, contributing AED29.4 billion in Q3 2024. The sector grew by 2 percent year-on-year in the third quarter of 2024, accounting for 9.7 percent of the emirate’s GDP, confirming its status as the largest non-oil activity for the seventh consecutive quarter. This performance illustrates the success of Abu Dhabi’s initiatives to broaden its industrial base, ensuring a sustainable and competitive economy.
Contributions from utilities sector
The electricity, gas, and water supply sector also made significant contributions to the economy in Q3 2024, with a value added of AED5.5 billion. This sector represented 1.8 percent of Abu Dhabi’s GDP and achieved a growth rate of 5 percent, reflecting the Emirate’s commitment to sustainability and efficient resource management.
